CMA: (Comparative Market Analysis)
 MLS: (Multiple Listing Services)
NTREIS: North Texas Real Estate Information System

The CMA generated report from MLS provides an average Sold Price per Square foot for selected sold properties and average Listed Price per Square foot for selected Active and Pending properties.

The MLS generated CMA does not account for many factors that are important and should only be used as a guideline. To generate more appropriate and reliable CMA many additional facts should be considered such as: condition of the house, upgrades, age, builders, size,  layouts and floor plan, location of the house in neighborhood, upgrades, curb and back/front view, size of the lot, and many more.  All these factors need to be adjusted for all properties to match with the subject property.

Also, the average result should be looked carefully and adjusted as needed. Unfortunately, I found several items and reports to be wrong, invalid, or misleading in the MLS NTREIS (North Texas Real Estate Information System). I caution each agent in North Texas to be aware of these inaccuracies. I have reported these to NTREIS MLS too, hope to be fixed sson.

1.    Most of the items in “CMA Average Results” derived from NTREIS (North Texas Real Estate Information System) MLS are wrong, Not Applicable or misleading.
These are Average BR (No. of Bedrooms), Bth (No. of Bathrooms), Gar/Cp/TCP, Blt (Year Built), SP%LP (Percentage of Sales Price to List Price), $/ SqFt (Average (SalePrice / SqFt)).

a.       The following in “CMA Average Results” are not applicable and should not display anything in that line, similar to Average under “City” Column:
BR, Bth, Gar/Cp/TCP, Blt.
For example, the Avg. Bth (Number of Bathrooms) is calculated as 1.7, which by definition means 1 full-bath and 7 half-bath. This is obvious that is wrong. The same logic holds for average number of bedrooms, average number of garage/cp/tcp and average year built.

b.      The following in “CMA Average Results” are currently calculated wrong and should be corrected:
Average SP%LP, $/ SqFt (Average (SalePrice / SqFt)). Currently, the MLS adds numbers under this column and divides by number of items in the list. In the example shown, this results in Avg $/ SqFt =$ 91.46. This is WRONG.

      The correct way is to use the weighted average, which simply divides the total Sale Price for all items to total SqFt of all items. In the example shown, this results in ($85,000+ $91,500, $ 127,000)/ (900 + 884 + 1494) = $303500/3368 = $90.11

2.    Average result should only be shown (displayed) for valid columns when and only when all data in that column are present.
For example, as shown in the picture, though the average Acr (Acres) could be a valid calculation, but because one property doesn’t have that data, the Average result should not be shown because it is missing data and would be wrong.